Nick Scali expected H1 FY27 profit of $28M to $32M

• Nick Scali reported expected underlying first-half profit between $28 million and $32 million amid mixed regional trading conditions.
• The announcement follows ongoing pressure in the Australia and New Zealand market, while the United Kingdom division recorded order growth.
• The furniture retailer is expanding its store network while navigating recovery from a recent cybersecurity incident.

Nick Scali (ASX:NCK) announced that its underlying net profit after tax for the six months ending Dec. 31 is expected to range between $28 million and $32 million.

The projected earnings follow challenging conditions in Australia and New Zealand, where first-quarter written sales orders fell 15% compared to an 11% increase in the prior corresponding period.

Because the provided trading update did not include executive quotes, the company noted that stores continued trading manually after an August cyber security incident rendered enterprise resource planning systems unavailable for approximately three weeks.

The business expects Australia and New Zealand first-half revenue to decline by 11% to 14%, while United Kingdom first-quarter like-for-like written sales orders grew by 14%.

Following the announcement, the Nick Scali share price was up at $14.21.

The retailer is maintaining its store expansion strategy with plans to open two new showrooms in Australia and New Zealand and one in the United Kingdom in late December.

The United Kingdom segment continues to show operational momentum, with total first-quarter written sales orders rising 29% as refurbished stores reopened.